Central Bank Pressure Index flags renewed political push on ECB as France and Italy debt strains mount - VT Markets

Central Bank Pressure Index flags renewed political push on ECB as France and Italy debt strains mount - VT Markets

Source: VT Markets

DW NOTE

The ECB has been under political pressure since Draghi's "whatever it takes" speech in 2012 — a euphemism for subordinating monetary policy to fiscal convenience. France and Italy's debt-to-GDP ratios both exceed 140%, and their yields spread over Germany widens whenever the market remembers the ECB won't monetise forever. The pressure isn't renewed; it never left.

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